NTB, September 2021: Farmer Terms of Trade Rate Was Down by 0.25 Percent

Farmer terms of trade (FTT) is the ratio between the indices of price received by farmers (It) and the indices of the price paid by farmers

FTT can be interpreted as an indicator to observe the purchasing power parity of farmers in the rural area. FTT also shows the terms of trade between agricultural products and consumption of goods and services as well as production cost.

FTT September 2021 was 106,58, decreased by -0,25 percent compared to the previous month. The decrease occurred because the indices of price received by farmers fell by -0,92 percent, which was higher than the decrease of the indices of price paid by the farmers that was only         -0,27 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 107,93, horticulture about 96,79; smallholders estate crops about 94,65; animal husbandry about 110,79; and fishery about 110,65.

In September 2021, the Household Consumption Indices (IKRT) decreased due to decreasing value of food, beverages, and tobacco.

Agricultural terms of trade in September 2021 were 105,81 percent, decreased by -0,66 percent compared to the previous month.